---
kind: "section"
citation: "42 U.S.C. § 1586"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1586"
heading: "Sale of specific housing projects"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1586"
units:
  - "Chapter 9 — Housing of Persons Engaged in National Defense"
  - "Subchapter VII — Disposal of War and Veterans’ Housing"
---

# §1586. Sale of specific housing projects

- (a) **Conditions precedent—** The [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development is specifically authorized to convey the following [housing](/usc/42/1590.md?p=b) [projects](/usc/42/13641.md?p=2) to the following local public [housing](/usc/42/1590.md?p=b) [agencies](/usc/42/8262.md?p=1) respectively, if—
  - (1) on or before January 30, 1953, (i) the conveyance is requested by the [governing body of the municipality or county](/usc/42/1590.md?p=a) and (ii) the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) has demonstrated to the satisfaction of the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development that there is a need for low-rent [housing](/usc/42/1590.md?p=b) (as such term is defined in the [United States Housing Act of 1937](/usc/42/1590.md?p=g) [[42 U.S.C. 1437](/usc/42/1437.md) et seq.]) within the area of operation of such public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) which is not being met by private enterprise;
  - (2) the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development determines that the [project](/usc/42/13641.md?p=2) requested will meet such need in whole or in part, and is suitable for low-rent [housing](/usc/42/1590.md?p=b) use; and
  - (3) on or before June 30, 1953, the [governing body of the municipality or county](/usc/42/1590.md?p=a) enters into an agreement with the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) (satisfactory to the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development) providing for local cooperation and payments in lieu of taxes not in excess of the amount permitted by [subsection (c)(5)](#c-5) of this section, and the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) enters into an agreement with the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development (in accordance with [subsection (c)](#c) of this section) or for the administration of the [project](/usc/42/13641.md?p=2):

    | [State](/usc/42/1590.md?p=e) | [Project](/usc/42/13641.md?p=2) number | Local public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) |
    | --- | --- | --- |
    | Alabama | 1041 | [Housing](/usc/42/1590.md?p=b) Authority of District of Birmingham. |
    |  | 1061 | [Housing](/usc/42/1590.md?p=b) Authority of Greater Gadsden. |
    |  | 1062 | [Housing](/usc/42/1590.md?p=b) Authority of Greater Gadsden. |
    |  | 1031 | [Housing](/usc/42/1590.md?p=b) Board of Mobile. |
    |  | 1033 | [Housing](/usc/42/1590.md?p=b) Board of Mobile. |
    |  | 1034 | [Housing](/usc/42/1590.md?p=b) Board of Mobile. |
    |  | 1035 | [Housing](/usc/42/1590.md?p=b) Board of Mobile. |
    |  | 1036 | [Housing](/usc/42/1590.md?p=b) Board of Mobile. |
    |  | 1101 | [Housing](/usc/42/1590.md?p=b) Board of Mobile. |
    |  | 1102 | [Housing](/usc/42/1590.md?p=b) Board of Mobile. |
    |  | 1072 | [Housing](/usc/42/1590.md?p=b) Authority of Sylacauga. |
    |  | 1076 | [Housing](/usc/42/1590.md?p=b) Authority of Sylacauga. |
    |  | 1073 | [Housing](/usc/42/1590.md?p=b) Authority of City of Talladega. |
    | Arkansas | 3023 | [Housing](/usc/42/1590.md?p=b) Authority of City of Conway. |
    | California | 4031 | [Housing](/usc/42/1590.md?p=b) Authority of City of Fresno. |
    |  | 4161 | [Housing](/usc/42/1590.md?p=b) Authority of County of Kern. |
    |  | 4141 | [Housing](/usc/42/1590.md?p=b) Authority of County of Kern. |
    |  | 4103 | [Housing](/usc/42/1590.md?p=b) Authority of City of Los Angeles. |
    |  | 4104 | [Housing](/usc/42/1590.md?p=b) Authority of City of Los Angeles. |
    |  | 4108 | [Housing](/usc/42/1590.md?p=b) Authority of City of Los Angeles. |
    |  | 4121 | [Housing](/usc/42/1590.md?p=b) Authority of City of Paso Robles. |
    |  | 4171 | [Housing](/usc/42/1590.md?p=b) Authority of City of Richmond. |
    |  | 4174 | [Housing](/usc/42/1590.md?p=b) Authority of City of Richmond. |
    | Connecticut | 6091 | [Housing](/usc/42/1590.md?p=b) Authority of City of Bristol. |
    |  | 6024 | [Housing](/usc/42/1590.md?p=b) Authority of Town of East Hartford. |
    |  | 6031 | [Housing](/usc/42/1590.md?p=b) Authority of City of New Britain. |
    |  | 6032 | [Housing](/usc/42/1590.md?p=b) Authority of City of New Britain. |
    |  | 6101 | [Housing](/usc/42/1590.md?p=b) Authority of City of New Haven. |
    |  | 6041 | [Housing](/usc/42/1590.md?p=b) Authority of City of Waterbury. |
    |  | 6213 | [Housing](/usc/42/1590.md?p=b) Authority of City of Waterbury. |
    | District of Columbia | 49012 | National Capital [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 49017 | National Capital [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 49044 | National Capital [Housing](/usc/42/1590.md?p=b) Authority. |
    | Florida | 8052 | [Housing](/usc/42/1590.md?p=b) Authority of City of Jacksonville. |
    |  | 8121 | [Housing](/usc/42/1590.md?p=b) Authority of City of Lakeland. |
    |  | 8062 | [Housing](/usc/42/1590.md?p=b) Authority of City of Miami. |
    |  | 8011 | [Housing](/usc/42/1590.md?p=b) Authority of City of Orlando. |
    |  | 8082 | [Housing](/usc/42/1590.md?p=b) Authority of City of Pensacola. |
    |  | 8084 | [Housing](/usc/42/1590.md?p=b) Authority of City of Pensacola. |
    |  | 8085 | [Housing](/usc/42/1590.md?p=b) Authority of City of Pensacola. |
    |  | 8131 | [Housing](/usc/42/1590.md?p=b) Authority of City of Sebring. |
    |  | 8041 | [Housing](/usc/42/1590.md?p=b) Authority of City of West Palm Beach. |
    | Georgia | 9071 | [Housing](/usc/42/1590.md?p=b) Authority of City of Albany. |
    |  | 9061 | [Housing](/usc/42/1590.md?p=b) Authority of Macon. |
    |  | 9063 | [Housing](/usc/42/1590.md?p=b) Authority of Macon. |
    |  | 9041 | [Housing](/usc/42/1590.md?p=b) Authority of Savannah. |
    |  | 9042 | [Housing](/usc/42/1590.md?p=b) Authority of Savannah. |
    |  | 9043 | [Housing](/usc/42/1590.md?p=b) Authority of Savannah. |
    | Illinois | 11081 | Madison County [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 11082 | Madison County [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 11111 | Winnebago County [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 11112 | Winnebago County [Housing](/usc/42/1590.md?p=b) Authority. |
    | Indiana | 12071 | [Housing](/usc/42/1590.md?p=b) Authority of City of Fort Wayne. |
    |  | 12021 | [Housing](/usc/42/1590.md?p=b) Authority of City of South Bend. |
    | Louisiana | 16051 | [Housing](/usc/42/1590.md?p=b) Authority of Parish of East Baton Rouge. |
    | Maryland | 18095 | [Housing](/usc/42/1590.md?p=b) Authority of Baltimore City. |
    |  | 18096 | [Housing](/usc/42/1590.md?p=b) Authority of Baltimore City. |
    |  | 18097 | [Housing](/usc/42/1590.md?p=b) Authority of Baltimore City. |
    |  | 18098 | [Housing](/usc/42/1590.md?p=b) Authority of Baltimore City. |
    | Massachusetts | 19051 | Boston [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 19021 | Chicopee [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 19022 | Chicopee [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 19061 | Pittsfield [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 19023 | Springfield [Housing](/usc/42/1590.md?p=b) Authority. |
    | Michigan | 20042 | [Housing](/usc/42/1590.md?p=b) Commission of Detroit. |
    | Nevada | 26021 | [Housing](/usc/42/1590.md?p=b) Authority of City of Las Vegas. |
    | New Hampshire | 27021 | [Housing](/usc/42/1590.md?p=b) Authority of City of Manchester. |
    | New Jersey | 28044 | [Housing](/usc/42/1590.md?p=b) Authority of City of Camden. |
    |  | 28021 | [Housing](/usc/42/1590.md?p=b) Authority of City of Long Branch. |
    |  | 28072 | [Housing](/usc/42/1590.md?p=b) Authority of City of Newark. |
    |  | 28111 | [Housing](/usc/42/1590.md?p=b) Authority of Town of Phillipsburg. |
    | New York | 30031 | Buffalo Municipal [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 30032 | Buffalo Municipal [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 30042 | Elmira [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 30033 | Lackawanna Municipal [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 30039 | Lackawanna Municipal [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 30034 | Niagara Falls [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 30071 | Niagara Falls [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 30082 | Massena [Housing](/usc/42/1590.md?p=b) Authority. |
    | North Carolina | 31023 | [Housing](/usc/42/1590.md?p=b) Authority of City of Wilmington. |
    |  | 31024 | [Housing](/usc/42/1590.md?p=b) Authority of City of Wilmington. |
    | Ohio | 33031 | Canton Metropolitan [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 33033 | Canton Metropolitan [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 33021 | Cincinnati Metropolitan [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 33071 | Cleveland Metropolitan [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 33074 | Cleveland Metropolitan [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 33075 | Cleveland Metropolitan [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 33112 | Lorain Metropolitan [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 33261 | Lorain Metropolitan [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 33262 | Lorain Metropolitan [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 33041 | Warren Metropolitan [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 33043 | Warren Metropolitan [Housing](/usc/42/1590.md?p=b) Authority. |
    | Oregon | 35021 | [Housing](/usc/42/1590.md?p=b) Authority of Portland. |
    | Pennsylvania | 36051 | [Housing](/usc/42/1590.md?p=b) Authority of County of Beaver. |
    |  | 36058 | [Housing](/usc/42/1590.md?p=b) Authority of County of Beaver. |
    |  | 36041 | [Housing](/usc/42/1590.md?p=b) Authority of Bethlehem. |
    |  | 36042 | [Housing](/usc/42/1590.md?p=b) Authority of Bethlehem. |
    |  | 36044 | [Housing](/usc/42/1590.md?p=b) Authority of Bethlehem. |
    |  | 36151 | Allegheny County [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 36152 | Allegheny County [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 36061 | [Housing](/usc/42/1590.md?p=b) Authority of County of Lawrence. |
    |  | 36021 | [Housing](/usc/42/1590.md?p=b) Authority of City of Erie. |
    |  | 36031 | [Housing](/usc/42/1590.md?p=b) Authority of County of Lycoming. |
    |  | 36011 | [Housing](/usc/42/1590.md?p=b) Authority of Philadelphia. |
    |  | 36012 | [Housing](/usc/42/1590.md?p=b) Authority of Philadelphia. |
    |  | 36014 | [Housing](/usc/42/1590.md?p=b) Authority of Philadelphia. |
    |  | 36015 | [Housing](/usc/42/1590.md?p=b) Authority of Philadelphia. |
    |  | 36016 | [Housing](/usc/42/1590.md?p=b) Authority of Philadelphia. |
    |  | 36101 | [Housing](/usc/42/1590.md?p=b) Authority of City of Pittsburgh. |
    |  | 36212 | Allegheny County [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 36295 | [Housing](/usc/42/1590.md?p=b) Authority of City of York. |
    | Rhode Island | 37013 | [Housing](/usc/42/1590.md?p=b) Authority of City of Newport. |
    | South Carolina | 38023 | [Housing](/usc/42/1590.md?p=b) Authority of City of Charleston. |
    |  | 38061 | [Housing](/usc/42/1590.md?p=b) Authority of City of Charleston. |
    |  | 38041 | [Housing](/usc/42/1590.md?p=b) Authority of City of Spartanburg. |
    |  | 38042 | [Housing](/usc/42/1590.md?p=b) Authority of City of Spartanburg. |
    | Tennessee | 40022 | Jackson [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 40023 | Milan [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 40011 | Nashville [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 40025 | Trenton [Housing](/usc/42/1590.md?p=b) Authority. |
    | Texas | 41064 | [Housing](/usc/42/1590.md?p=b) Authority of City of Corpus Christi. |
    |  | 41065 | [Housing](/usc/42/1590.md?p=b) Authority of City of Corpus Christi. |
    |  | 41133 | [Housing](/usc/42/1590.md?p=b) Authority of City of Freeport. |
    |  | 41031 | [Housing](/usc/42/1590.md?p=b) Authority of City of Houston. |
    |  | 41131 | [Housing](/usc/42/1590.md?p=b) Authority of City of Lake Jackson. |
    |  | 41101 | [Housing](/usc/42/1590.md?p=b) Authority of City of Mineral Wells. |
    |  | 41103 | [Housing](/usc/42/1590.md?p=b) Authority of City of Mineral Wells. |
    |  | 41072 | [Housing](/usc/42/1590.md?p=b) Authority of City of Orange. |
    |  | 41032 | [Housing](/usc/42/1590.md?p=b) Authority of City of Pasadena. |
    |  | 41141 | [Housing](/usc/42/1590.md?p=b) Authority of City of Texarkana. |
    |  | 41121 | [Housing](/usc/42/1590.md?p=b) Authority of City of Wichita Falls. |
    | Virginia | 44131 | Alexandria Redevelopment and [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 44132 | Alexandria Redevelopment and [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 44133 | Alexandria Redevelopment and [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 44135 | Alexandria Redevelopment and [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 44136 | Alexandria Redevelopment and [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 44065 | Newport News Redevelopment and [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 44074 | Norfolk Redevelopment and [Housing](/usc/42/1590.md?p=b) Authority. |
    |  | 44086 | Portsmouth Redevelopment and [Housing](/usc/42/1590.md?p=b) Authority. |
    | Washington | 45043 | [Housing](/usc/42/1590.md?p=b) Authority of City of Bremerton. |
    |  | 45277N | [Housing](/usc/42/1590.md?p=b) Authority of County of Clallam. |
    |  | 45315N | [Housing](/usc/42/1590.md?p=b) Authority of County of Clallam. |
    |  | 45133 | [Housing](/usc/42/1590.md?p=b) Authority of County of King. |
    |  | 45052 | [Housing](/usc/42/1590.md?p=b) Authority of City of Seattle. |
    |  | 45053 | [Housing](/usc/42/1590.md?p=b) Authority of City of Seattle. |
    |  | 45054 | [Housing](/usc/42/1590.md?p=b) Authority of City of Seattle. |
    |  | 45055 | [Housing](/usc/42/1590.md?p=b) Authority of City of Seattle. |
    |  | 45056 | [Housing](/usc/42/1590.md?p=b) Authority of City of Seattle. |
    |  | 45122 | [Housing](/usc/42/1590.md?p=b) Authority of City of Vancouver. |

  In addition to the authority of the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development under the first sentence of this subsection, the [Secretary](/usc/42/242q–4.md?p=2) is specifically authorized to convey any permanent war [housing](/usc/42/1590.md?p=b) [project](/usc/42/13641.md?p=2) to a local public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) if requested in writing, within sixty days after April 20, 1950, by such [agency](/usc/42/8262.md?p=1) or the executive head of the municipality (or of the county or parish if such [project](/usc/42/13641.md?p=2) is not in a municipality) within which the [project](/usc/42/13641.md?p=2) is located, or by the Governor of the [State](/usc/42/1590.md?p=e) where an [agency](/usc/42/8262.md?p=1) of the [State](/usc/42/1590.md?p=e) has authority to operate the [project](/usc/42/13641.md?p=2): Provided, That any conveyance by the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development pursuant to this sentence shall be subject to the same conditions and requirements as provided in this section with respect to a [project](/usc/42/13641.md?p=2) specifically designated herein.

- (b) **Projects as “low-rent housing”—** Upon the conveyance by the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development of any such [project](/usc/42/13641.md?p=2) pursuant to the provisions of this section, such [project](/usc/42/13641.md?p=2) shall constitute and be deemed to be “low-rent [housing](/usc/42/1590.md?p=b)” as that term is used and defined in the [United States Housing Act of 1937](/usc/42/1590.md?p=g) [[42 U.S.C. 1437](/usc/42/1437.md) et seq.] (and to be a low-rent [housing](/usc/42/1590.md?p=b) [project](/usc/42/13641.md?p=2) assisted pursuant to that Act, within the meaning of [section 1404a(b) of this title](/usc/42/1404a.md)). Any instrument of conveyance by the [Administrator](/usc/42/4005.md?p=1) stating that it is executed under subchapters II to VII of this chapter shall be conclusive evidence of compliance therewith insofar as any title or other interest in the property is concerned.
- (c) **Conditions and requirements of agreements—** The agreement between the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) and the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development required by [subsection (a)](#a) of this section shall contain the following conditions and requirements, and may contain such further conditions, requirements, and provisions as the [Secretary](/usc/42/242q–4.md?p=2) determines—
  - (1) during a period of forty years following the conveyance the [project](/usc/42/13641.md?p=2) shall be administered as low-rent [housing](/usc/42/1590.md?p=b) in accordance with subsections 2(1) and 2(2) of the [United States Housing Act of 1937](/usc/42/1590.md?p=g) [[42 U.S.C. 1402(1)](https://uscode.house.gov/view.xhtml?req=(/us/usc/t42/s1402/1)) and (2)]: Provided, That if at any time during such period the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) and the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development agree that the [project](/usc/42/13641.md?p=2), or any part thereof, is no longer suitable for use as low-rent [housing](/usc/42/1590.md?p=b), the [project](/usc/42/13641.md?p=2), or part thereof, shall with the approval of the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development be sold by the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) after which the agreement shall be deemed to have terminated with respect to such [project](/usc/42/13641.md?p=2) or part thereof except that the proceeds from such sale, after payment of the reasonable expense thereof, shall be paid to the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development, or, with the [Secretary](/usc/42/242q–4.md?p=2)’s approval, used to finance the repair or rehabilitation of a [project](/usc/42/13641.md?p=2) or part thereof conveyed to the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) under this section;
  - (2) the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) shall, within six months following the conveyance, initiate a program for the removal of all families residing in the [project](/usc/42/13641.md?p=2) on the date of conveyance who are ineligible under the provisions of the [United States Housing Act of 1937](/usc/42/1590.md?p=g) [[42 U.S.C. 1437](/usc/42/1437.md) et seq.] for continued occupancy therein, and shall have required such ineligible tenants to vacate their dwellings within eighteen months after the initiation of such program: Provided, That military personnel as designated by the [Secretary of Defense](/usc/42/1594e.md?p=a) or his designee shall not be subject to such removal until eighteen months after the date of conveyance;
  - (3) annually during the term of such agreement, the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) shall pay to the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development all income from the [project](/usc/42/13641.md?p=2) remaining after deducting the amounts necessary (as determined pursuant to regulations of the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development) for (i) the payment of reasonable and proper costs of operating, maintaining, and approving such [project](/usc/42/13641.md?p=2), (ii) the payments in lieu of taxes authorized hereunder, (iii) the establishment and maintenance of reasonable and proper reserves as approved by the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development, and (iv) the payment of currently maturing installments of principal of and interest on any indebtedness incurred by such public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) with the approval of the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development: Provided, That the provisions of this paragraph shall not be applicable to any [project](/usc/42/13641.md?p=2) which is consolidated under a single contract with one or more low-rent [projects](/usc/42/13641.md?p=2) being assisted under the [United States Housing Act of 1937](/usc/42/1590.md?p=g) [[42 U.S.C. 1437](/usc/42/1437.md) et seq.], and all income from any such [project](/usc/42/13641.md?p=2) conveyed under this section may be commingled with funds of the [project](/usc/42/13641.md?p=2) or [projects](/usc/42/13641.md?p=2) with which it is consolidated and applied in accordance with the requirements of the consolidated contract and the provisions of section 10(c) of the said Act [[42 U.S.C. 1410(c)](https://uscode.house.gov/view.xhtml?req=(/us/usc/t42/s1410/c))];
  - (4) during the term of such agreement, the [project](/usc/42/13641.md?p=2) shall be exempt from all real and personal property taxes levied or imposed by the [State](/usc/42/1590.md?p=e), city, county, or other political subdivisions;
  - (5) for the tax year in which the conveyance is made and the next succeeding tax year annual payments in lieu of taxes may be made to the [State](/usc/42/1590.md?p=e), city, county, or other political subdivisions in amounts not in excess of the real property taxes which would be paid to such [State](/usc/42/1590.md?p=e), city, county, or other political subdivisions if the [project](/usc/42/13641.md?p=2) were not exempt from taxation; and thereafter, during the term of such agreement, payments in lieu of taxes with respect to the [project](/usc/42/13641.md?p=2) may be made in annual amounts which do not exceed 10 per centum of the annual shelter rents charged in such [project](/usc/42/13641.md?p=2);
  - (6) in selecting tenants for such [project](/usc/42/13641.md?p=2), the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) shall give such preferences as are prescribed by subsection 10(g) of the [United States Housing Act of 1937](/usc/42/1590.md?p=g) [[42 U.S.C. 1410g](https://uscode.house.gov/view.xhtml?req=(/us/usc/t42/s1410g))], except that for one year after the date of conveyance of a [project](/usc/42/13641.md?p=2), the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) shall, to the extent permitted by law, give such preferences, by [allocation](/usc/42/2021b.md?p=2) or otherwise, to military personnel as the [Secretary of Defense](/usc/42/1594e.md?p=a) or his designee prescribes to the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1); and
  - (7) upon the occurrence of a substantial default in respect to the requirements and conditions to which the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) is subject (as such substantial default shall be defined in such agreement), the public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) shall be obligated at the option of the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development, either to convey title in any case where, in the determination of the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development, (which determination shall be final and conclusive), such conveyance of title is necessary to achieve the purposes of this subchapter and the [United States Housing Act of 1937](/usc/42/1590.md?p=g) [[42 U.S.C. 1437](/usc/42/1437.md) et seq.], or to deliver possession to the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development of the [project](/usc/42/13641.md?p=2), as then constituted, to which such agreement relates: Provided, That in the event of such conveyance of title or delivery of possession, the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development may improve and administer such [project](/usc/42/13641.md?p=2) as low-rent [housing](/usc/42/1590.md?p=b), and otherwise deal with such [housing](/usc/42/1590.md?p=b) or parts thereof, subject, however, to the limitations contained in the applicable provisions of the [United States Housing Act of 1937](/usc/42/1590.md?p=g). The [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development shall be obligated to reconvey or to redeliver possession of the [project](/usc/42/13641.md?p=2), as constituted at the time of reconveyance or redelivery, to such public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) or to its successor (if such public [housing](/usc/42/1590.md?p=b) [agency](/usc/42/8262.md?p=1) or a successor exists) upon such terms as shall be prescribed in such agreement and as soon as practicable after the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development shall be satisfied that all defaults with respect to the [project](/usc/42/13641.md?p=2) have been cured, and that the [project](/usc/42/13641.md?p=2) will, in order to fulfill the purposes of this subchapter and the [United States Housing Act of 1937](/usc/42/1590.md?p=g), thereafter be operated in accordance with the terms of such agreement. Any prior conveyances and reconveyances, deliveries and redeliveries of possession shall not exhaust the right to require a conveyance or delivery of possession of the [project](/usc/42/13641.md?p=2) to the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development pursuant to this paragraph upon the subsequent occurrence of a substantial default.
- (d) **Disposition of payments—** At the end of each fiscal year, the total amount of payments during such year to the [Secretary](/usc/42/242q–4.md?p=2) of [Housing](/usc/42/1590.md?p=b) and Urban Development in accordance with [subsection (c)](#c) of this section shall be covered into the Treasury as miscellaneous receipts.

## Source credit

(Oct. 14, 1940, ch. 862, title VI, § 606, as added June 28, 1948, ch. 688, § 7, as added Apr. 20, 1950, ch. 94, title II, § 201, 64 Stat. 59; amended by Ex. Ord. No. 10284, §§ 6, 7, eff. Sept. 4, 1951, 16 F.R. 8971; Ex. Ord. No. 10339, eff. Apr. 7, 1952, 17 F.R. 3012; Ex. Ord. No. 10425, eff. Jan. 16, 1953, 18 F.R. 405; Pub. L. 86–372, title VIII, § 807, Sept. 23, 1959, 73 Stat. 687; Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79 Stat. 669; Pub. L. 93–383, title II, § 207, Aug. 22, 1974, 88 Stat. 669.)

## Notes

### Editorial Notes

### References in Text

The United States Housing Act of 1937, referred to in subsecs. (a)(1), (b), and (c)(2), (3), (7), is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 653, which is classified generally to chapter 8 (§ 1437 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note under section 1437 of this title and Tables.

Subchapters III and VI of this chapter, referred to in subsec. (b), were comprised of sections 1531 to 1536 and 1571 to 1576, respectively, of this title and have been omitted from the Code. For further details, see note set out under section 1522 of this title.

Subsections 2(1) and 2(2) and section 10 of the United States Housing Act of 1937, referred to in subsec. (c)(1), (3), (6), are references to sections 2 and 10 of the Act prior to the general revision of the Act by Pub. L. 93–383. The Act as so revised is classified to section 1437 et seq. of this title. Provisions of former sections 2 and 10 are covered by sections 3 and 5 of the Act which are classified to sections 1437a and 1437d of this title.

### Amendments

1974—Subsec. (b). Pub. L. 93–383, § 207(a), struck out provisions relating to payment of capital grants or annual contributions to low-rent housing projects.

Subsec. (c)(1). Pub. L. 93–383, § 207(b), inserted provision relating to financing repair or rehabilitation of a project or part of project conveyed to public housing agency under this section.

1959—Subsec. (b). Pub. L. 86–372, § 807(1), provided that if any such project is consolidated under a single annual contributions contract with any low-rent project being assisted with annual contributions under United States Housing Act of 1937, payment of any annual contribution on account of any project so assisted shall not be deemed to be a capital grant or annual contribution with respect to any project conveyed hereunder.

Subsec. (c)(3). Pub. L. 86–372, § 807(2), inserted proviso making provisions of subsec. (c)(3) inapplicable to any project which is consolidated under a single contract with one or more low-rent projects being assisted under United States Housing Act of 1937, and permitting commingling of income from such project with funds of project or projects with which it is consolidated.

### Statutory Notes and Related Subsidiaries

### Transfer of Functions

For transfer of functions to Secretary of Housing and Urban Development, see note set out under section 1581 of this title.

### Executive Documents

### Executive Order No. 10284

Ex. Ord. No. 10284, Sept. 4, 1951, extended time for request for conveyance of housing projects from Dec. 31, 1950, to Dec. 31, 1951, and extended time for entering agreements with Public Housing Administration from June 30, 1951, to June 30, 1952. See note set out under section 1589a of this title.

### Executive Order No. 10339

Ex. Ord. No. 10339, Apr. 7, 1952, set out as a note under section 1589a of this title, extended time for request for conveyance of housing projects from Dec. 31, 1951, to Dec. 31, 1952, and extended time for entering agreements with Public Housing Administration from June 30, 1952, to June 30, 1953.

### Executive Order No. 10425

Ex. Ord. No. 10425, Jan. 16, 1953, set out as a note under section 1589a of this title, extended time for request for conveyance of housing projects from Dec. 31, 1952, to June 30, 1953.